Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was negative, and capital expenditure exceeded the prior quarter, resulting in a negative free cash flow and a weakened margin. Compared to the same quarter last year, cash generation improved modestly while capital expenditure was lower.
- Revenue rose from the prior quarter, yet operating cash flow turned from positive to negative, driving free cash flow negative and materially lowering free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow shifted from positive to negative and margin weakened. Versus the same quarter one year earlier, the free cash flow deficit narrowed and margin improved modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$286.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$3.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$3.3B
Cash generated by operations before capital spending.
CapEx
$151.0M
Capital spending and related asset purchases.
FCF margin
-70.9%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2022-06-30 | $6.3B | $1.1B | $139.0M | $970.0M | 15.5% |
| 2022-09-30 | $2.8B | -$525.0M | $142.0M | -$667.0M | -24.0% |
| 2022-12-31 | $3.8B | $3.0B | $145.0M | $2.9B | 75.1% |
| 2023-03-31 | $4.9B | -$3.3B | $151.0M | -$3.5B | -70.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -578.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash flow swing
Operating cash flow turned from positive in the prior quarter to negative in the current quarter, despite higher revenue. This shift is the strongest observable driver of the negative free cash flow and weakened margin.
The negative swing in operating cash flow was the primary factor behind the free cash flow deficit and margin contraction.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from the prior quarter, yet operating cash flow turned from positive to negative, driving free cash flow negative and materially lowering free cash flow margin.
Compared to the immediately preceding quarter, free cash flow shifted from positive to negative and margin weakened. Versus the same quarter one year earlier, the free cash flow deficit narrowed and margin improved modestly.
Monitor the magnitude of operating cash flow relative to revenue in the next quarter, as it drove the negative free cash flow this quarter.